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easyMCQCUET Accountancy 2022 30 Aug Shift 22026Accountancy
1 mark

If debentures are converted into equity shares, it is a/an : _____

  1. A
    Inflow of cash
  2. B
    No flow of cash
  3. C
    Outflow of cash
  4. D
    Cash and Cash equivalents

Solution & Step-by-step Explanation

Conversion of debentures into equity shares involves no movement of cash, as it is merely a transfer from one form of security to another. Hence, there is no flow of cash.

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If debentures are converted into equity shares, it is a/an : _____
A
Inflow of cash
B
No flow of cash
C
Outflow of cash
D
Cash and Cash equivalents

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